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-2- On April 8, 1982, a memo was sent to Susan Mowry concerning surface and ground water monitoring for the CF&I Allen and Maxwell Mines (see Attachment A). On April 15, 1982, Susan Mowry sent a copy of my April 8 memo to CF&I. On April 23, 1982, Jack Gillespie and I met in my office to discuss my it 8 memo. In this meeting, I explained in detail the analysis I pr ormed on the overburden and water quality chemistry. I also explained the statutory and regulatory reasoning used in requiring receiving stream standards as a measure of material damage and as a measure of the impacts of mining on the quality of surface and ground water. Jack Gillespie said I should review the arguments CF&I presented to the Water Quality Control Commission. I asked him to send ine a copy of this information. On April 28, 1982, I received the follow up letter from Jack Gillespie dated April 27, 1982 (Attachment B). The receiving stream standards for the Puryatoire River and its tributaries were established to protect the stream's water quality for aquatic habitat, agriculture, and domestic uses. These standards represent thresholds, above which material damage could occur to the users of the water within and downstream of the permit areas. The list of receiving stream standard'parameters was used to evaluate CF&I's proposed monitoring plan because Rule 4.05.1(3) requires of the operator that, "In no case shall Federal and State water quality statutes, standards or effluent limitation be violated.~~To evaluate if water quality standards have been violated, the company must monitor the quality of ground and surface water as required under Rule 4.05.13(1)(a)(i) and Rules 4.05.13(2)(a)(i). Also, Rule 4.05.13(2)(a)(ii) requires the operator ;~~a notify ... the Division within 5 days after analytical results of the sample collections indicate that non-compliance with a permit condition or applicable standard has occurred.~~'Without analyzing water quality samples for parameters with established receiving stream standards, the Division cannot judge the operators compliance with the following performance standards; Rules 4.05.1(3), 4.05.2(7), and 4.05.10(2)(a)(i). The applicant also will not have the data to report any non-compliance with receiving stream standards as required in Rule 4.05.13(2)(a)(ii). Receiving stream standards reflect minimum acceptable degradation levels for a stream. The NPDES permit system uses the receiving stream standards to evaluate point source discharges to the streams. The NPDES permit system, however, does not govern non-point source discharges to receiving streams such as ground water from disposal sites. This is covered in the Act, Section 34-33-121(2)(d) quoted below: